The investigation, codenamed "Unfair Play," also targeted the general director of operations for the organizing committee of Rio 2016, Leonardo Gryner, who was also arrested, according to Agencia Brasil.

Both men are being indicted for corruption, money laundering, and organized crime.

"The IOC's Chief Ethics and Compliance Officer has asked the Brazilian authorities for full information in order to proceed with the IOC's investigation, and has offered the IOC's full cooperation," said the International Olympic Committee in a statement.

Read More

"The IOC Ethics Commission's activities started immediately after the allegations were made, and the investigation is ongoing. Given the new facts, the IOC Ethics Commission may consider provisional measures while respecting Mr Nuzman's right to be heard.

"The IOC will not comment further on this matter until a recommendation is issued by the IOC Ethics Commission. It also reiterates that the presumption of innocence prevails."

Brazil was awarded the Games in October 2009 and was the first South American country to host the Olympics.